Q: An employer enters into a one year contract of employment with a senior level employee with a specific and unambiguous clause that says:
TERMINATION OF EMPLOYMENT
Three calendar months notice period will apply if your employment is terminated at any stage. Should the notice period be shorter than 3 calendar months, then the defaulting party must pay the balance of the salary equating to the remainder of the notice period not served (eg: should the employee request to leave with a 1 month notice period, then the employee must pay the employer the salary amount for the balance of the 2 months).
The above applies to both the employee and the employer.
Is this clause fair and acceptable from an Islamic viewpoint if the employee signed the agreement willingly and after having had the clause explained to him and was given sufficient time to ponder over it before he signed the agreement.
Would any sin be committed to holding either party accountable to this clause in the agreement if services are terminated. (Assuming that the termination of services itself is not the problem issue)
Please note that the clause will apply both ways and not only for the benefit of the Employer i.e. if the employer for example wishes to terminate the services of the employee on one months notice then the employer will have to pay the employee the balance of 2 months salary even though he will not physically be at work and vice versa.
حدثنا الحسن بن علي الخلال حدثنا أبو عامر العقدي حدثنا كثير بن عبد الله بن عمرو بن عوف المزني عن أبيه عن جده : أن رسول الله صلى الله عليه و سلم قال الصلح جائز بين المسلمين إلا صلحا حرم حلالا أو أحل حراما والمسلمون على شروطهم إلا شرطا حرم حلالا أو حل حراما
قال أبو عيسى هذا حديث حسن صحيح. (ترمذي 1/251)
Mufti Zakaria Makada
Checked & Approved:
Mufti Ebrahim Salejee (Isipingo Beach)